Despite the Federal Reserve’s cutting interest rates by a percentage point since September, bond yields have been surging, hitting their highest levels in more than a year in mid-January. While multiple factors influence this trend, a major culprit is America’s untenable long-term debt. As the debt grows, Washington must borrow more money to finance it. Investors, looking to mitigate risk amid such profligate federal spending, demand higher returns on U.S. Treasurys. This leads to compounding interest payments and even more borrowing and debt. 

The average interest rate that the federal government pays on our national debt is 3.3%—about double what it was when Mr. Trump left office. In 2024 net interest costs accounted for 18% of federal revenue, and nearly half of every dollar we borrowed went to finance the debt. This trend is continuing: By 2035 interest payments will suck up almost a quarter of federal revenues, and about two-thirds of every dollar borrowed will go to finance the debt. 

Left unchecked, these payments are on track to become the single largest item in the federal budget by 2051, crowding out private investment and national priorities like infrastructure and national defense. If interest rates exceed expectations, this could happen even sooner. My economics team calculates that if borrowing costs are just 1 percentage point higher than projected, it would add an additional $5 trillion to the national debt over 10 years.

Higher rates of federal borrowing lead to higher borrowing costs for businesses and families on everything from mortgages to car loans to small-business financing. This stifles economic growth and strains household budgets. Rising national debt makes everyone pay more. 

It’s time to face reality. The era of spending without limits or accountability has reached its breaking point. We must start by reducing the debt, a challenge that’s daunting but not insurmountable. Our debt-to-GDP ratio hovers around 123%, an all-time high excluding the height of the Covid-19 pandemic. In 2024 the federal deficit was 6.4% of GDP, higher than most times of peace and relative prosperity throughout history. According to a 2010 study in the American Economic Review, countries with debt-to-GDP ratios exceeding 90% experience median growth about 1 percentage point lower—and average growth nearly 4 percentage points lower—than nations with lower debt burdens. 

Reversing this trend offers clear benefits. According to the Congressional Budget Office, every 10-percentage-point reduction in our debt-to-GDP ratio could lower interest rates by a quarter point, saving tens of billions of dollars annually. The CBO also estimates that stabilizing our debt-to-GDP ratio could add $5,500 to real per capita income by 2054. Lower debt levels would restore investor confidence, reduce borrowing costs and secure America’s economic future. This is why the 119th Congress must focus its attention on reducing the deficit. 

It’s a perilous path for a nation to spend more to finance its past than to secure its future. If interest costs continue to spiral out of control, it will undermine economic stability and global trust in the dollar. To realize the benefits of pro-growth policies such as tax reform and regulatory relief, we must root out wasteful, fraudulent and unnecessary spending and restore the fiscal health of our country. True fiscal discipline is the only path forward. 

Washington has a surplus of possible avenues but a deficit in political will to get the job done. Enter Mr. Trump. His political courage exceeds that of any president in modern political history. He’s risked his life pursuing solutions to America’s problems, from border insecurity and unfair trade practices to our waning leadership on the world stage. Under his leadership, by cutting spending and controlling the national debt, the U.S. can launch an era of unparalleled strength and prosperity.

Mr. Arrington, a Texas Republican, is chairman of the House Budget Committee